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When Ballet Arizona leaps into a new season from a record-breaking year, the question is: How to keep dancing with success?

Subscriptions rose by 50 percent, to 2,500, during the 2002-03 season, officials said.

But in stressed-out economic times, many cultural nonprofits find it hard to lure the funding necessary to stay afloat. The ballet operates on an annual budget of $3 million, half of which comes from donations and half from ticket sales.

The ballet starts in October with preseason shows, and performs from November through June. The organization faces a spike in competition from out-of-town entertainment companies, officials said. Famous shows such as the New York Rockettes come to town during the holidays and swipe attention from hometown venues such as the ballet.

Ballet Arizona's signature performances include "The Nutcracker," "Romeo and Juliet," and "Swan Lake."

Nonprofit observers say the company needs to create a new audience base to stay healthy. The ballet faced a threat prior to the 2000-01 season, when it found itself in a financial quagmire. It needed more than $350,000 to keep operating until sales for The Nutcracker came in during the holidays. A public appeal led to a flow of donations. The ballet's board hired a new executive director, Sherry New, and artistic director, Ib Anderson, who kept the company alive.

"They're on the road to recovery but are not out of the woods yet. They need to build on their accomplishments of the past season, but also bring innovative strategies to developing new audiences," said Herb Paine of Phoenix-based Paine Consulting, who has worked with the organization. "They need to align their artistic vision with a business vision. It's vital to extend themselves and broaden their appeal.

"The competition is incredible now, from blockbuster performances such as the Rockettes and big concerts to outside alternative dance groups. It presents a a challenge for local arts organizations."

Marketing and Communications Director David Eichler said the competitive scenario is inevitable in a growing market.

"We're appealing to the business community on a grassroots level to support us," he said.

Eichler has worked in Hollywood producing movies including "Murder at 1600" and "Free Willy II," and was hired by the ballet last year. He said the dance company plans to step up its marketing push to cast a wider net of enthusiasts.

"I'm revising our ad messages and public awareness campaigns. We'll be advertising with local print and radio, and will add television spots this year. The TV materials roll out in October," he said. The company adopted a new tag line: Every Step Tells a Story. "The point is to communicate that ballet is easy to watch and there are a lot of stories going on."

Another angle to reel in bigger audiences is a partnership with The Phoenix Symphony.

"We'll perform 'Swan Lake' and 'The Nutcracker' with them. It's been five years since we did 'Nutcracker' with them and we've never done 'Swan Lake,' Eichler said.

Another key element developed by the company is a broader ticket price range.

"We've added several price categories to our tickets. We had three categories before and now we'll have six. So the range is $7 to $102 per ticket, versus a starting price of $24 per ticket," Eichler said.

"We want to enable people who felt they couldn't come before and reverse the perception that ballet is only for the wealthy. Our business is live entertainment."

Additional highlights planned include the retirement of prima ballerina, Yen-li Chen-Zhang, after the season concludes, and an unnamed ballet slated for April created entirely from scratch by Anderson. In June, the company will host a festival celebrating the 100th birthday of George Ballanchine, the genre's late master.

Fund-raising efforts will step up this year as well, Eichler said, and the department plans to expand its staff.

Development Director Carla Malvic, who came aboard last year, said the company is in the black now.

"For an arts organization or any nonprofit, that's fantastic. When I can show businesses that debt has been eliminated, it makes it easier for corporate donors to say yes," she said.

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